New York State Assembly

 
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A01085 Summary:

A01085 Actions:

A01085 Committee Votes:

Committee:RULES   Chair:Heastie      
DATE:01/23/2017AYE/NAY:27/0  Action: Favorable         Correction Date:01/27/2017
Heastie
Aye
Kolb
Aye
Gottfried
Aye
Oaks
Aye
Lentol
Excused
Butler
Aye
Farrell
Aye
Crouch
Aye
Gantt
Aye
Finch
Aye
Nolan
Excused
Barclay
Aye
Weinstein
Aye
Raia
Aye
Hooper
Aye
Hawley
Aye
Ortiz
Excused
Pretlow
Aye
Cook
Aye
Glick
Aye
Morelle
Aye
Aubry
Aye
Englebright
Aye
Dinowitz
Aye
Colton
Aye
Magnarelli
Excused
Perry
Aye
Galef
Aye
Paulin
Aye
Titus
Aye
Peoples-Stokes
Aye

Committee:JUDICIARY   Chair:Weinstein      
DATE:01/23/2017AYE/NAY:20/0  Action: Favorable refer to committee Rules        
Weinstein
Aye
Montesano
Aye
Dinowitz
Aye
Barclay
Aye
Titus
Aye
Goodell
Aye
Lavine
Aye
Graf
Aye
Zebrowski
Aye
Lupinacci
Aye
Weprin
Aye
Palumbo
Aye
Braunstein
Aye
Simotas
Aye
Quart
Excused
Titone
Aye
Buchwald
Aye
Steck
Aye
Seawright
Aye
Simon
Aye
Joyner
Aye

A01085 Floor Votes:

A01085 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A1085A
 
SPONSOR: Dinowitz (MS)

 
TITLE OF BILL:
 
An act to amend the general obligations law, in relation to requirements
for the use of plain language in consumer transactions
 
 
PURPOSE:
 
Increases the applicability of the plain language law to consumer
contracts involving amounts up to $100,000
 
 
SUMMARY OF PROVISIONS:
 
Section One amends the closing paragraph of subdivision a of section
5-702 of the general business law.
 
Section Two is the effective date.
 
 
JUSTIFICATION:

New York State first enacted the plain language law in 1977. The statute
requires "plain language" in certain written agreements to which a
consumer is a party, and where the subject money, property or services
are primarily used for personal, family, or household purposes. A dollar
threshold was placed on the definition of "consumer contracts", making
the statute only applicable to transactions valued at less than $50,000.
 
In 1977, the $50,000 threshold covered essentially all consumer
contracts. Today the $50,000 threshold may not even cover the cost of an
automobile. This bill proposes to increase the threshold to $100,000.
 
Since the enactment of this statute, several states have followed New
York's lead and have adopted its own "plain language" statutes (Connec-
ticut in 1980, Pennsylvania in 1993, Florida in 2003, and Minnesota in
1968). The state of California enacted their plain language law in 1988.
 
 
PRIOR LEGISLATIVE HISTORY:

2015-16 - A.1152 - Passed Assembly / S.3135 - Referred to Judiciary
2013-14: A.7777- Passed Assembly / S.5206- Referred to Judiciary
 
 
FISCAL IMPLICATIONS:
 
None
 
 
EFFECTIVE DATE:
One hundred eighty days after becoming law

A01085 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1085--A
                                                                 Cal. No. 75
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 10, 2017
                                       ___________
 
        Introduced  by  M.  of  A. DINOWITZ, WEPRIN, SKOUFIS, GOTTFRIED, ARROYO,
          JOYNER -- Multi-Sponsored by -- M. of A. HEVESI, HIKIND --  read  once
          and referred to the Committee on Judiciary -- ordered to a third read-
          ing  --  passed by Assembly and delivered to the Senate, recalled from
          the  Senate,  vote  reconsidered,  bill  amended,  ordered  reprinted,
          retaining its place on the special order of third reading
 
        AN ACT to amend the general obligations law, in relation to requirements
          for the use of plain language in consumer transactions
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The closing paragraph of subdivision a of section 5-702  of
     2  the  general  obligations  law,  as  amended by chapter 1 of the laws of
     3  1994, is amended to read as follows:
     4    Any creditor, seller or lessor who fails to comply with this  subdivi-
     5  sion shall be liable to a consumer who is a party to a written agreement
     6  governed  by  this  subdivision in an amount equal to any actual damages
     7  sustained plus a penalty of fifty dollars. The total class action penal-
     8  ty against any such creditor, seller or  lessor  shall  not  exceed  ten
     9  thousand  dollars in any class action or series of class actions arising
    10  out of the use by a creditor, seller or lessor  of  an  agreement  which
    11  fails to comply with this subdivision.  No action under this subdivision
    12  may  be brought after both parties to the agreement have fully performed
    13  their obligation under such agreement, nor shall any creditor, seller or
    14  lessor who attempts in good faith to comply  with  this  subdivision  be
    15  liable  for  such  penalties. This subdivision shall not apply to a good
    16  faith attempt to describe the constant yield or other method  of  deter-
    17  mining  the  lease  charge and depreciation portions of each base rental
    18  payment under a lease of personal property. It also shall not  apply  to
    19  agreements  involving  amounts in excess of [fifty] one hundred thousand
    20  dollars nor prohibit the use of words or phrases or forms  of  agreement
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03570-03-8
        A. 1085--A                          2
 
     1  required  by  state  or  federal law, rule or regulation or by a govern-
     2  mental instrumentality.
     3    § 2. This act shall take effect on the one hundred eightieth day after
     4  it  shall have become a law and shall apply to any contract entered into
     5  after such effective date.